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Affordable Housing Development Request for Information

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Affordable Housing Development Request for Information

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Affordable Housing Development Request for Information

  1. 1. REQUEST FOR INFORMATION 17-013 AFFORDABLE HOUSING DEVELOPMENT Community Services Community Development Division February 9, 2017
  2. 2. Consolidated Plan • Identified Rental Housing as a High Priority for the following population: – Extremely Low & Low Income – Families with Children – Elderly & Frail Elderly – Public Housing Residents – Individuals – Persons with Physical & Developmental Disabilities
  3. 3. Consolidated Plan • Goal Description: Ensuring adequate rental housing opportunities for low-income families and individuals through the provision and sustainability of decent housing by encouraging the following type of projects: – Rental Housing Rehabilitation – Rental Housing Construction – Rental/Owner Housing Code Enforcement – Homelessness Prevention: TBRA Security Deposits
  4. 4. Area Median Income Limits Household Size Income Limit 30% AMI 60% AMI 80% AMI 1 $12,400 $24,780 $33,000 2 $14,150 $28,320 $37,700 3 $15,900 $31,860 $42,400 4 $17,650 $35,340 $47,100 5 $19,100 $38,220 $50,900 6 $20,500 $41,040 $54,650 7 $21,900 $43,860 $58,450 8 $23,300 $46,680 $62,200
  5. 5. Examples Individual working full-time making $12/hour earns $24,960 annually/$2,080 monthly: > 60% AMI Single Mother with 2 children making $15/hour earns $31,200 annually/$2,600 monthly: >60% AMI Family of 4 with 2 working adults making $12/hr earns $49,920 annually/$4,160 monthly: Over 80% AMI Elderly individually receiving average Social Security benefit of $1,341/mo: 30% – 60% AMI
  6. 6. 2013 Comprehensive Housing Affordability Strategy • 34,080 Households: 18,435 or 54% LMI • 13,720 Family/Children Households: 4,670 or 34% LMI • 22,230 Renter Households: 16,365 or 74% LMI • 3,415 Elderly Households: 1,075 or 31% LMI – 445 LMI Renters – 630 LMI Owners
  7. 7. Fair Housing Requirements • Prohibits discrimination in housing and lending based on several protected classes – Race Religion – Color Sex – National Origin Familial Status – Handicap (Disability) • Exemptions include: – Owner-occupied buildings with no more than 4 units – Single-family housing sold or rented without broker – Housing operated by organizations and private clubs that limit occupancy to members – Elderly (age 55 & older) housing developments
  8. 8. Current Conditions • Survey conducted in June/July 2016 of 94 apartment complexes in College Station Rental Type Efficiency 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms 5 Bedrooms Average Reported Rent – 2013 $622 $761 $933 $1,429 $2,135 $3,265 Average Reported Rent – 2016 $1,026 $828 $1,079 $1,567 $2,467 $3,360 HUD 2017 Fair Market Rent $624 $699 $845 $1,230 $1,489 N/A
  9. 9. Examples Individual working full-time making $12/hour earns $24,960 annually/$2,080 monthly: $624 housing exp Single Mother with 2 children making $15/hour earns $31,200 annually/$2,600 monthly: $780 housing exp Working family of 4 with 2 working adults making $12/hr earns $49,920 annually/$4,160, monthly: $1,248 housing exp. Elderly individually receiving average Social Security benefit of $1,341/mo: $402 housing exp
  10. 10. Current Conditions Examples: – Individual: $624 housing expense – Single Mom: $780 housing expense – Family of 4: $1,248 housing expense – Elderly individual: $402 housing expense Rental Type Efficiency 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms 5 Bedrooms Average Reported Rent – 2013 $622 $761 $933 $1,429 $2,135 $3,265 Average Reported Rent – 2016 $1,026 $828 $1,079 $1,567 $2,467 $3,360 HUD 2017 Fair Market Rent $624 $699 $845 $1,230 $1,489 N/A
  11. 11. Current Condition • Affordable & Workforce Housing Inventory Complex Restriction Source of Funding/Year Total Units LMI Units Vacancy Rate Waiting List Heritage LMI LIHTC – 1999 96 96 0% 39 Haven LMI/Homeless LIHTC – 2000 24 24 4% 6 Santour Court LMI LIHTC – 2007 16 16 6.25% 12 Southgate Village LMI Project-based Section 8 – 1970 200 199 2.5% 68 Villas of Rock Prairie LMI/Elderly LIHTC – 1994 132 92 0% - Terrace Pines LMI/Elderly LIHTC – 2004 100 80 0% 163 LULAC Oak Hill (Section 202) LMI/Elderly Section 202 50 50 3% 9 Windsor Pointe Transitioned to student property LIHTC – 1994 192 0 N/A N/A
  12. 12. Housing Choice Voucher Program • Program funded by U. S. Department of Housing and Urban Development • Provide rental assistance payments for households at or below 60% of area median income (AMI) • Minimum of 75% reserved for households below 30% of AMI • Authorized to issue up to 1,901 vouchers each month for the 7 county region • Average approximately 1,602 or 84% of this number due to high rental costs
  13. 13. RFI Background • Current conditions and rental inventory support increased efforts in expanding affordable housing opportunities for all LMI populations • Inquiries beginning in June regarding potential support of tax credit applications for College Station • Tax credit allocation process changed preferences, thereby increasing interest in CS developments • Late adoption by Governor of tax credit process • High cost for developer to respond to RFP/submit application • Decision to release Request for Information
  14. 14. Purpose • To solicit information from firms interested and qualified to develop an affordable elderly or family development within the City.
  15. 15. Responses • 7 proposals received Developer Name Site Location Type Pre- App Full App JES Dev Co. Double Mountain Rd. Senior X X MGroup Highway 6 S. Senior X The Property Group Sebesta Rd. Senior or Family X DMA Dev. Co/BVAHC Not Specified Senior HuntJon Not Specified Senior Blackrock Builders Not Specified Senior
  16. 16. Basic Tax Credit Process • 9% Tax Credits allocated by Texas Department of Housing and Community Affairs – funds from HUD • Competitive Process – Region 8 • Qualified Allocation Plan (QAP) sets parameters and point structure • Tax Credit award – generates capital for construction
  17. 17. Urban Counties: • Bell • Bosque • Brazos • Burleson • Coryell • Lampasas • McLennan • Robertson Rural Counties: • Bosque • Falls • Freestone • Grimes • Hamilton • Hill • Leon • Limestone • Madison • Milam • Mills • San Saba • Washington Map of State Service Regions
  18. 18. Basic Tax Credit Process • Pre-application Information – Due January 9th – Development Name & Proposed Entity Name & Type – Target Population – Development Address, City, Zip, County, Region & designation – Census Tract – # of Low Income/# Market Rate/# of Total Units – Notifications to Public Officials – Self Score
  19. 19. Basic Tax Credit Process • Full Application – Due March 1st – Administrative – Development Site – Development Activities – Finance – Organization – Third Party – Community Input
  20. 20. Basic Tax Credit Process Timeline January 9th: Pre-applications due March 1st: Application due March – June: Public Hearings, Challenges July: Final Recommendations by TDHCA Board Spring 2018: Construction begins
  21. 21. JES Proposed Development John Guttman
  22. 22. Staff Recommendation • Staff recommends that Council adopt a resolution of support for the JES Development Co., Inc. HTC application for the 2017 competitive 9% housing tax credit application process to maximize the opportunity for an award in College Station. • Strengthen the application by providing CDBG funds
  23. 23. CDBG Funding Available • The FY 2017 Annual Action Plan and budget allocated $889,687 in CDBG funds for supporting development partners interested in development affordable/workforce housing. • HOME funding also a possibility
  24. 24. Future Efforts • Planning a community discussion regarding affordable housing with hopes of developing new partnerships expand affordable housing opportunities in College Station • Staff is continues to research available funding mechanisms to expand affordable housing opportunities: – CDBG/HOME Funds – HTC: 9% or 4% – Section 108 Loans – Others • Information will be presented to Council at a future date for consideration
  25. 25. Questions
  26. 26. Elderly Developments Permitted Complex Total Units LMI Units Methodist Retirement Communities – Phase 1 72 Independent Living 24 Assisted Living 18 Memory Support 0 Methodist Retirement Communities – Phase 2 96 Independent Living 0

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